Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• Japan-France Summit Meeting
• Bills related to the National Security Council
• The launch of a reinvestigation into past accidents at sea in relation to the abduction issue
• An interim report on express way tolls
• The corporate tax rate

(Abridged)

REPORTER: I would like to ask a question concerning the outcome of the Japan-France Summit Meeting; in particular I would like to ask about the cooperative relationship of the two countries in regard to nuclear energy. Could you share with us how this will be of benefit to Japan's growth strategy?

CHIEF CABINET SECRETARY SUGA: If I am correct, I believe that France effectively generates more than 100% of its electricity needs through nuclear power. Personally I have not yet been informed of the details of the meeting, but I believe that the technical cooperation of Japan and France, which includes the development of a nuclear fuel cycle that leads to reduced volumes of nuclear waste and reduced radiotoxicity and the development of fast reactors, leads the world. Therefore, I believe that this cooperation is extremely important. Technologically, I believe that France and Japan are world leaders. I believe that the strengthening of our cooperation in research and development in this field following the recent summit meeting will benefit the policies of both nations and the growth strategy of Japan.

REPORTER: I would like to ask a question on the same topic. I understand that Japanese nuclear technology enhances the nation's international competitiveness, and the Prime Minister has been making a tremendous effort to export nuclear energy and other infrastructure towards Japan being the top seller. Could you share with us how you believe this cooperation will influence these efforts?

CHIEF CABINET SECRETARY SUGA: In the interest of peace and safety, Japan would like to cooperate in order to contribute to the stability of life of the citizens of each of the nations to which we export nuclear technology.

(Abridged)

REPORTER: I would like to ask a question concerning the NSC bill, which gained Cabinet approval this morning. I understand that the Government will now advance discussions concerning the confidential information security act. Could you share with us a rough schedule for the formulation of the act?

CHIEF CABINET SECRETARY SUGA: The threat of information leakage continues to heighten. When sharing information with other countries, sharing is conducted with the assumption that each nation keeps that information secure. However, Japan does not yet have a confidential information security act and we recognize that this is particularly problematic. The Government is currently discussing the matter from a number of points of contention while duly respecting the rights of citizens to access information and freedom of information for the media. We are planning to introduce the NSC bill, or the bill concerning confidential information security to the Diet during the current session. To this end, we will swiftly draft the bill so as to allow us to introduce it to the Diet.

(Abridged)

REPORTER: During a press conference following the Cabinet Meeting, Minister of Land, Infrastructure, Transport and Tourism Ota revealed that the Japan Coast Guard launched a reinvestigation into past accidents at sea in relation to the abduction of Japanese nationals. I believe that this reinvestigation will be a large undertaking. Could you share with us the outlook of the timing for when investigation results will be disclosed, and your current plans on the method of disclosure?

CHIEF CABINET SECRETARY SUGA: I am aware that the minister held such a press conference. I believe that the Japan Coast Guard will diligently conduct a thorough reinvestigation. I also believe that the Japan Coast Guard will determine if results will be disclosed, and if so, the appropriate timing and method of disclosure depending on the progress of the investigation.

At this moment, it is difficult to pin down exactly when we will disclose the reinvestigation results.

(Abridged)

REPORTER: The expert group of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) today produced an interim report on expressway tolls. Could you share with us your thoughts on the report?

CHIEF CABINET SECRETARY SUGA: An MLIT committee is currently discussing a scheme for completing the required repairs and maintenance of expressways but they have yet to come to a conclusion. I believe that the MLIT committee will make an appropriate decision after giving consideration to the official report. However, if I am to elaborate further, I believe that they will continue their discussions with an understanding that, in principle, the costs of expressway maintenance should be borne by those who use the roads.

REPORTER: I would like to ask a question on the same topic. I believe that the interim report says that the revenue that will be raised through the extension of the non-free period will be limited to use for countering dilapidation. However, some have expressed concern that this revenue may be used for the construction of new roads without prior debate, pushed by the move to achieve national resilience in times of disaster. Could you please state your views in this regard?

CHIEF CABINET SECRETARY SUGA: As you know the plan did not cover maintenance of expressways. I am referring to the initial plan. Because of this, I believe that they have decided to include necessary costs for maintenance, checks and repairs. I believe that accidents such as the one in the Sasago Tunnel prompted MLIT to discuss these matters.

That being said, I believe that these matters and the construction of new roads should be clearly separated.

REPORTER: I would like to ask a question concerning the lowering of the corporate tax rate, which you discussed yesterday. Am I right to understand that the Government is considering lowering the overall effective corporate tax rate?

CHIEF CABINET SECRETARY SUGA: I did not say that the tax rate would be lowered. I believe that the Government should naturally develop an environment that enables Japan to remain competitive in the international market.

As I said yesterday, until 2014 we have in place a surtax to raise revenue for earthquake reconstruction. After 2014, the tax rate will drop by 2.5%. This has already been decided. Given this, it is my basic understanding that the Government should always investigate what this means in terms of Japan's international competitiveness.

I believe that we must always discuss this matter from perspectives like the subject of taxation and revenue raising policies.

The Government's basic goal is to revitalize the Japanese economy. Therefore I believe that we must address this issue while keeping this goal in mind.

(Abridged)

REPORTER: You just mentioned the subject of taxation, and although I may be repeating the question, I understand that this concerns removing the 2.5% corporate surtax, but am I right to understand that the Government is also considering lowering the overall effective corporate tax rate?

CHIEF CABINET SECRETARY SUGA: As was mentioned in the question earlier, only approximately one quarter of companies pay corporate tax. Frankly, the current situation is that in Japan, 25%, or one in every four companies, pay corporate tax. It is somewhere over 20%. Therefore, I believe that we must always bear in mind international competitiveness when determining what action to take.

(Abridged)